Formal job creation under EPFO falls by 8% in December 2022

Formal job creation under EPFO falls by 8% in December 2022

Formal jobs creation under the Employees’ Provident Fund Organisation fell by 8% in December 2022 to 1.49 million compared to 1.62 million net new subscribers added to the retirement fund body in the preceding month, shows the provisional payroll data by the labour ministry, released on Monday.

Even the net new employees added to the Employees’ State Insurance Corporation fell by 4.2% to 1.80 million compared to 1.88 million in November 2022.

The year-on-year comparison shows net new additions under the retirement fund body was just 2% up for EPFO when compared to December 2021 when it stood at 1.46 million.

Net new subscribers added to EPFO in the current fiscal stood at 1.29 million in April, 1.21 million in May, 1.42 million in June, 1.55 million in July and 1.53 million in August, 1.68 million in September and 129 million in October.

Of the total 1.49 million net subscribers added during December, around 0.80 million new members have come under the ambit of EPF & MP Act, 1952 for the first time. Approximately 1.07 million net subscribers exited but re-joined EPFO by transferring their accumulations from previous PF account to the current PF account, instead of claiming for final withdrawal while 0.38 million exited EPFO.

Among the new members, 0.24 million members registered were from the age group of 18-21 followed by 0.21 million members in the 22-25 years age bracket. Out of total new members joined, approximately 55.6% were from the age-group of 18-25 years of age.

“This indicates that the majority of the members joining EPFO are first-time job seekers who are joining the organised sector workforce of the country,” the labour ministry said.Gender-wise analysis of payroll data indicates that enrolment of net female members stood at 0.20 million in December, 2022, which is 25.57% of the net new additions in December.

According to the labour ministry, 27,700 new establishments were registered under ESIC in the month of December to provide social security cover to their employees and female labour force accounted for 0.83 million of the net new additions

The payroll data is provisional since the data generation is a continuous exercise, as updation of employee records is a continuous process.

EPFO is a social security organization responsible for providing a number of benefits of provident fund, pension and insurance to the members covered under the statute of EPF & MP Act, 1952.

Under the Employees’ State Insurance Corporation, subscribers are entitled to medical treatment for themselves and their dependents, unemployment cash benefit in certain contingencies and maternity benefit in case of women employees.

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Author: Shirley